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CTVA or LMNR: Which Is the Better Value Stock Right Now?

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Investors interested in Agriculture - Operations stocks are likely familiar with Corteva, Inc. (CTVA - Free Report) and Limoneira (LMNR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Corteva, Inc. has a Zacks Rank of #2 (Buy), while Limoneira has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CTVA is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CTVA currently has a forward P/E ratio of 22.83, while LMNR has a forward P/E of 365.31. We also note that CTVA has a PEG ratio of 1.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LMNR currently has a PEG ratio of 24.35.

Another notable valuation metric for CTVA is its P/B ratio of 1.30. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LMNR has a P/B of 1.44.

These metrics, and several others, help CTVA earn a Value grade of B, while LMNR has been given a Value grade of F.

CTVA sticks out from LMNR in both our Zacks Rank and Style Scores models, so value investors will likely feel that CTVA is the better option right now.


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